ACCELERATE

INNOVATION.
Make informed decisions.

Finacle Treasury Solution

www.infosys.com/ nacle
Universal Banking Solution | Systems Integration | Consulting | Business Process Outsourcing
02 Finacle
Today’s solution
for tomorrow’s
challenges
T oday’s treasury professionals grapple with many
challenges, while still focusing on running a profitable
business. Complexities continue to increase, and it is easy to
become preoccupied. Thoughtful treasury professionals will
ask themselves a series of questions – How to reduce the
cost of transactions, eliminate manual processes and deploy
scalable systems? How to manage the growing complexity
of regulatory compliance to ensure risk mitigation? How to
enhance and introduce lines of revenue from new products
and services in a highly competitive ecosystem? How to
optimize treasury business support systems to evolve into fully
integrated trading platforms?

The answers to these questions will determine the health of

their business and their ability to prosper in challenging times.

Finacle 03
 Finacle treasury
Designed by seasoned treasury professional
and shaped by traders from the world’s largest
treasuries, the Finacle treasury solution is an
integrated front, middle and back office solution
that spans the entire deal lifecycle for a wide range
of trading and capital markets products without
compromising the depth in each asset class.

Manage growing complexities

Finacle treasury solution is a highly scalable,
multi-entity enabled solution that is designed to
help banks manage multiple challenges while
optimizing their treasury business support
systems. Flexible interfaces and fully parameterized
business functionality make Finacle treasury a truly
agile solution enabling banks to change according
to growing demands.
Ensure regulatory and compliance readiness:
Finacle treasury solution is fully equipped to help
you mitigate risk, reduce complexity, aid in audit
preparedness, and enhance your speed-to-comply.
Outplay the competition and optimize
technology: The solution supports new product
enhancements while ensuring localization,
globalization as well as scalability.

Reduce costs: Reduce transaction costs, eliminate

manual processes, deploy scalable systems, and
right-size staff resources.

04 Finacle
Functional architecture

External Interface Infrastructure - Reference Data Sources and Trading Interfaces

Foreign
Exchange
Trading Risk Management Operations & Trade Processing
Money
Markets
Pre Trade Analytics Credit Risk Deal Life Cycle Management
FX and interest
Rate Derivatives
Pre Trade Compliance Market Risk & VaR Con rmation and Settlements

Fixed Income
Structuring and Sales Liquidity Management Collateral Management

Cash Equity
Real Time Positions and P&L P&L Analysis Custodian Services
Equity
Derivatives Scenario Analysis IR Gap Analysis Nostro Reconciliation

Hybrids &
Structures Customer Portfolio Management Compliance Accounting and Sub GL

Credit
Derivatives Multi Channel Enabled - E-Banking Platform & Mobility

Mutual Funds
Real Multi Entity Finacle Scripting Studio Inbuilt Reporting Email Integration

Commodities
Core Banking Local Payment
Systems Enterprise GL SWIFT / CLS Gateways ALM Systems Custodians

Finacle 05
 Key modules
Wide asset coverage indices, rights, warrants and fixed and floating
preference shares. Corporate actions such as a cash
Finacle treasury solution supports a wide expanse or stock dividend or a split are supported.
of cross asset classes in the industry. It supports
trading, risk management and processing on a
single integrated platform.
Fixed income
Finacle treasury solution allows traders to trade
in many types of discount and interest-bearing
Foreign exchange securities. The system processes securities as
a series of cash flows, rather than treating each
Support for foreign exchange includes FX spot,
security type as a separate deal type. This offers
FX forward, FX swap, FX time option (including
more flexibility. A cash flow can be, for example, an
takedowns and roll forwards), non-deliverable
interest payment, a premium payment, a payment
forwards and full-fledged corporate FX functionality.
of principal or a fee.
Its in-built flexibility supports bespoke instruments
such as multiple counterparty swap and uneven
swaps. Risk for FX transactions can be decomposed
through a third currency for easier management of
positions.
Exchange and interest rate
derivatives
If you handle complex transactions, Finacle treasury
Money markets solution can help you manage them. Not only
does the solution offer comprehensive derivatives
The money markets engine supports short and processing and risk management for standard
long term loans and deposits, call or notice deals derivative instruments but it also has the ability
and structured loans and deposits. Through this to support complex, non-standard derivatives
module, amortization or accretion schedules can through its powerful inbuilt rules and formulae.
be built, floating rates calculated, and capitalized
interest payments can be initiated.

Structured products
Equities
The structured products module is comprehensive
and supports most of the standard structured
The equities module supports proprietary equities
products dealt with in the market. Support expands
trading, with support for equities, mutual funds,

06 Finacle
to cover the entire deal lifecycle from deal capture,
settlements and confirmations to accounting.
The solution enables users to create mixed
structures (a combination of two underlying
structures).
Traders delight
Intuitive deal entry platform
A comprehensive dealer-friendly front office module
enables quick and efficient deal capture. The solution
provides treasurers with the flexibility to price and
capture deals or import these from external sources
through integrated interfaces. Trade can be captured
through the Finacle treasury API (deal loader) and
through other dealing systems like Reuters.
Smooth navigation
Dealers can open multiple windows concurrently
and toggle between them. Users can also save
a preferred layout and load it each time they
commence work. Screen features can be set
according to user preference while intelligent
key-stroke mapping increases capture speed and
efficiency. The order of deal entry can be configured.
Easy-to-use shortcuts and extensive online help
further enable swift and effortless trading.
Credit derivatives
This module supports multiple products including
single name credit default swaps, index credit
default swaps, total return swaps.
In control always
Online rate feeds, from sources such as Reuters,
ensure information is timely and accurate for making
decisions. New deals as well as changed rates
are flashed for dealers to view. Trade and market
data is updated in real-time. Users can specify the
frequency for market data updates. Positions and
P&L can be viewed online in real-time, segregated
by product, currency, dealer and portfolio. Deals or
positions to be viewed can be customized for each
dealer. Position keeping sessions can be initiated as
required.
Multi-entity structure
Finacle treasury solution is multi-entity enabled and
supports operations across geographies on a single
system. Different legal entities can trade on a single
database under different time zones. Aggregation
for trades, positions and risk is supported across
entities. The solution supports trading books with
Finacle 07
 unlimited hierarchies effectively capturing the
organization and risk structures of the entity.
Dynamic dashboards
Dealers can monitor deals and positions in real-time
through highly configurable blotters. All blotters in
Finacle treasury solution can be linked to Microsoft
Excel in real-time for analysis.
Powerful pricing engine
The powerful pricing engine allows dealers to price
trades using real-time market rate feeds. Derivative
pricing using various pricing methodologies such
as cash flow discounting, zero rates or rates with
appropriate mark-up, Black Scholes-Extension
(Garman-Kohlhagen) or Binomial-CRR and Binomial-
LR method for FX and interest rate options is
Risk management
Finacle treasury solution offers powerful real-
time tools to view positions and manage market,
currency and credit risks effectively.
• Online monitoring of positions, P&L numbers
and liquidity position by asset class, currency,
trading portfolios and time horizons
• Integrated Value at Risk (VaR) engine with
parametric, historical and Monte Carlo models
which suit even non-linear portfolios with full-
fledged support for back testing
• Integrated limits monitoring for pre-trade and
post-trade limits monitoring
Value at Risk (VaR)
The Value at Risk module provides calculations for
market risk of the portfolio. The risk can be viewed by
currency, portfolio or for specifically selected
transactions. All calculation methodologies, including
parametric, Monte Carlo and historical, are supported.
Back testing and stress testing are also supported.
Multiple revaluation methodologies
The revaluation methodologies supported for foreign
exchange deals include mark to market, accrual and
realized vs. un-realized, swap points using manual
08 Finacle
supported. Pricing of complex derivatives is
supported through one of the world’s leading pricing
library providers.
Simulation and scenario analysis
Finacle treasury solution enables traders to
simulate and run scenarios and observe its effect
on the underlying portfolio. This flexible scenario-
based analysis helps define risk provision and
timely, accurate decision making.
Limits monitoring
Limits can be checked prior to trade entry. Pre-
settlement, settlement, counterparty, country,
trading book, intra-day, overnight and gap limits are
supported to help manage treasury risk effectively.
inputs or interpolation from yield crves using linear
and cubic spline methodologies. For securities,
the revaluation methodologies mark to market
and amortized (straight line, interest basis, EIR and
effective yield) are supported. Revaluation is also
supported using market prices for traded products.
Limits control
Sophisticated limits module helps in setting up
limits across deal types and also helps consolidate
risks across products. Tenor-wise limits can be set
up at the counter-party, country and trading book
or portfolio levels. Limits workstation empowers risk
mangers to monitor limits utilization under various
categories like country, counter-party, trading book
and portfolios. Its powerful drill down feature allows
users to pinpoint trades causing limit consumption.
The user-friendly graphical interface displays usage
and availability across tenors.
Collateral management
The collateral management module provides
comprehensive support for management of the
collaterals right from defining eligibility, threshold
valuation setup for tracking collateral movement,
collateral valuation and margin calls management.
Operations
Complete deal processing from accounting and
deal settlement, to verification, confirmation and
Nostro reconciliation. Powerful reporting tools
are seamlessly integrated giving users up-to-date
information.
Straight Through Processing (STP)
The solution provides full STP for all supported deal
types from deal capture and pre-deal analysis to
operations life cycle processing and settlement.
Deal lifecycle
Complete workflow for deals passing from the front
office to the back office is supported. In addition,
managers can dynamically alter workflows as required
allowing best practices to be deployed at any time.
Operational control
The solution’s security and permission system
allows tighter control over your bank’s operational
risk. Each and every action within the system has
permissions aligned to it. There are multiple levels
of security including user log-on, function-based
and field-based. Importantly, the security features
support user groups creation with hierarchical
security structures.
Exceptions management
The inbuilt exception management system
raises exceptions during events, such as when a
trade is entered by junior dealers and manually
specified details for counter party, comments and
payment instructions. It can also raise exceptions
for a counterparty on the watch list and when the
amount or rate tolerance.
Static data
Users are able to load static data easily and update
it on an ongoing basis. This includes counterparty,
security, F&O contract, user identities, user
permissions, trading books, entities, departments
and Nostros. The four-eye principle is supported
for security sensitive maintenance providing
advanced control.
Accounting
Finacle treasury solution comes with a highly
flexible, integrated multi-currency accounting and
general ledger system. Each accounting trade and
event is recorded in accordance with standards
set by the user organization. Multiple accounting
standards are supported.
Dashboards and blotters
Users can monitor deals, positions and Nostro
movements through highly configurable and real-
time blotters. All blotters in the Finacle treasury
solution can be linked to Microsoft Excel in real-
time and also can be exported to Access database.
Users can undertake most operations on the deals
from the deal blotter itself.
Reporting
The solution has its own reporting infrastructure
which enables users to customize and design
reports to suit their bespoke requirements. Many
of the reports come with user selected criteria
greatly enhancing effectiveness of the reporting
application. Formats such as pdf, rtf, excel and html
are supported.
Messaging framework
Powerful messaging framework enables complete
STP for settlement and confirmation messages
over SWIFT gateway. Rule based messaging
infrastructure ensures STP over other standard
gateways as well. Besides it is extremely easy to
design in-house confirmations to be sent by e-mail,
fax or paper.
Finacle 09
 Cutting edge technology
• Built on industry standard open • Rich set of parameters
architecture, render the solution
with integrated, secure and scalable reporting extremely flexible and receptive to user needs
infrastructure • Built in interfaces for
• The tiered LiMo architecture, leading industry systems
combined with server such as Reuters Dealing 3000, EBS, Markitwire,
based processing and intelligent caching strategy SWIFT, RMDS
provides much desired scalability and performance • Industry standards-based interfacing
• Sophisticated security management at framework
that is highly configurable and generic to enable
both upstream and downstream interfacing
application, database and user levels with built with external systems
in checks and role-based access
• Role-based security enables the • Seamless integration with
organizations to MS Office products
control and manage what individual is allowed enables real-time data flow from application to
to see and do MS Excel. The solution also enables publishing of
data into MS Access database
• Finacle treasury’s unique extensibility
toolkit • Finacle treasury Excel plug-in allows MS
combined with built-in scripting engine enables Excel to
banks to not only customize, but even enhance be used as front-end for data capture as well as
the solution as per the bank’s requirement batch uploads
without requesting for source-code change

Business benefits
Efficient front-mid-back office
processing
An integrated system with straight through processing
in the front, middle and back office the solution
reduces operational costs that often emerge from
leveraging multiple systems. It enables transparent
and interactive service delivery to customers.
Comprehensive 24x7 solution
The solution provides a full range of products
and their derivatives in FX, money markets and
securities, round the clock. This empowers the bank
with an all-in-one system that addresses corporate
clients’ needs for sophisticated functionalities. It also
relieves the constraint of unavailability of systems for
long periods during EOD operations.

Greater flexibility
Easy configuration of new products and processes
is accomplished through thousands of built-in
parameters. The Scripting Studio ensures the solution
keeps pace with growing business needs. The system’s
reporting tools are ranked among the most intuitive
and easy to use in the industry.
Collaboration and co-creation
Finacle treasury features a fully customizable
user interface, dashboards streamlined for optimal
workflow control, and product roadmap shaped
with input from customers.

Higher operational efficiency
The solution provides full STP for all supported
instruments from pricing and pre-deal analysis to
operation lifecycle processing, confirmation and
settlement. It comes with a powerful integration
framework that interfaces with the bank’s core
banking solution and external data sources, to
minimize operational delays and ensure seamless
transaction flows.
Lower TCO
The solution allows users, belonging to different
legal entities to work on a single system and
database, with support for cross-entity consolidation
of risk and standing data. This significantly lowers
implementation costs and enables ease of centralized
reporting for the bank.

10 Finacle
Finacle helps build tomorrow’s bank

Finacle from Infosys partners with banks, the world over, to accelerate
innovation and unlock the value levers of their business. It has never been
this easy to manage growing complexities while optimizing treasury
business support systems to evolve into fully integrated trading platforms.

Bring customers to tomorrow’s bank with Finacle treasury solution.

Finacle 11
About Finacle
Finacle from Infosys partners with banks to transform process, product
and customer experience, arming them with ‘accelerated innovation’
that is key to building tomorrow’s bank.

For more information, contact Finacleweb@infosys.com www.infosys.com/finacle

© 2013 Infosys Limited, Bangalore, India, Infosys believes the information in this publication is accurate as of its publication date; such information is subject to change without notice. Infosys
acknowledges the proprietary rights of the trademarks and product names of other companies mentioned in this document.